Question: Manufacturing Facility 2 - Improved Enginecring has applied 6 Sigma and Lean Manufacturing techniques and has been able to reduce the setup time on Machine

Manufacturing Facility 2- Improved
Enginecring has applied 6 Sigma and Lean Manufacturing techniques and has been able to reduce the setup time on Machine 1 for part A and part B to 1 minute. The demand for the facility has not increased. It is still 600 assemblies per week (15 assemblies/hour). The manufacturing facility is available for 8 hours per day, 5 days per weck.
Figure 2: Specification for Manufacturing Facility 2
Raw Material A
Cost: $10? unit
Deliver: Once/Week
Buffer: 1 Batch Part A Raw Materials
Machine 1
Labor Rate: $200? hour
Part A (Batch Size ?)
Setup Time: 1min
Run Time: 1min? part
Part A: 1 Required
Assembly Time: 2 minutes
Part B: 1 Required
Labor Rate: $250? hour
Part C: 1 Required Release in batches of ?
Product xYZ
Ship In Batches of 600
Paid Immediately
Price/Unit: $100? unit
Demand = Maximum Production
Deliverable Set 2:
For manufacturing facility 2, answer the following questions. To reccive credit, clearly explain your logic and show all your work.
Assuming 100% uptime and availability, identify the optimum batch sizes to be processed in Machine 1, Machine 2, and assembly while still meeting the 600 assembly/week production requirements.
What is the bottleneck in the manufacturing facility? Justify your choice.
The part C raw material buffer, the Part C component buffer, and the part A and part B component buffers have been removed from the system. Why are they not necessary?
In dollars, what is the average amount of work-in-progress, WIP, inventory?
What is the approximate lead time of an assembly, assuming that no time is required to move the materials and no time is lost due to machines/assembly waiting for parts?
 Manufacturing Facility 2- Improved Enginecring has applied 6 Sigma and Lean

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